Tax planning is a legitimate strategy to invest in various plans allowed by the income tax act in order to lower your annual tax bill. It could also entail joining or leaving investment schemes in order to minimize taxes as far as is permitted by law.
Need For Tax Planning
All individuals that fall under the IT bracket are required to pay taxes. Today, tax planning is essential to lowering tax obligations through the use of various investment strategies allowed by the income tax Act. With the use of tax planning, one can arrange their tax payments such that they will obtain sizable returns over a particular time period with no risk. Additionally, efficient tax preparation can lower one’s tax liability.
It means planning affairs in such a manner, so that the tax obligation is managed properly.
The objective of Tax Management is to comply with the provisions of Income Tax Law and its allied rules.
Tax Management helps in avoiding payment of interest, penalty, prosecution etc.
1. Tax Management deals with filing of Return in time.
2. Getting the accounts audited.
3. Deducting tax at source etc.
Filing of Income Tax Returns
The taxpayer must inform the income-tax department in detail of his taxable income and losses. The Income-tax Department receives this information in the form of a return of income. You can learn more about the many rules and procedures pertaining to providing (filing) an income tax return in this section. The provisions included in this section apply to providing the income tax return for the assessment year 2022–23, or the financial year 2021–2022.
As is common knowledge, the updated deadline of June 30, 2020, has been set for submitting the TDS return for the fourth quarter. As a result, this article serves as a form of reminder to all taxpayers to be diligent this time around about filing their returns by the deadline in order to avoid unforeseen interest and late fines. This article provides all TDS return information, including appropriate forms, assesses types, the process for filing returns online, and information on default penalties.